Kathleen G. Rust

Ideological Foundations of Perceived Contract Breach Associated With Downsizing: An Empirical Investigation

This paper explores the effects of three managerial ideologies on the degree of psychological contract breach perceived in connection with a downsizing event. Results from surveys conducted in the U.S. and Singapore suggest that a strong belief in the ideologies of market competition or shareholder interest reduces the perceived contract breach associated with a downsizing, while strong belief in the third ideology, the ideology of employee worth, has the opposite effect. Theoretical implications and suggestions for future research are discussed.

Downsizing, ideology and contracts: a Chinese perspective

Purpose – The purpose of this paper is to explore the effects of three managerial ideologies on the degree of employment contract breach perceived in connection with a downsizing.Design/methodology/approach – Surveys were used to collect data from southwest China. Multiple regression analyses were conducted to explore the impact of three managerial ideologies on the perceived employment contract breach in connection with downsizing.Findings – Results suggest that a strong belief in the ideology of market competition reduces an individuals perception that downsizing constitutes a breach of the employment contract between employer and employee. By contrast, a belief in employee worth has the opposite effect, strengthening the believers perception that downsizing constitutes an employment contract breach. Belief in the third ideology, the ideology of shareholder interest, appears to have no influence on whether respondents perceived downsizing as an employment contract breach.Practical implications – The r...

Perceived Breach of Contract for One's Own Layoff vs. Someone Else's Layoff: Personal Pink Slips Hurt More

In this study we examine how the perception of layoff as a violation of a psychological contract can vary depending upon ones perception of employer contractual obligation. We also investigate how perceptions of layoffs vary depending on whether one is focusing on his/her own layoff or the layoff of someone else. Survey results from 81 layoff victims reveal that respondents perceive their own layoff as a breach of contract more than they do the layoff of someone else. In addition, respondents who believe strongly in employee self reliance perceive their own layoff as less of a contract breach. Ideas for future research and implications for managers are discussed in our conclusions.